BUILDING A PATH FOR SAFER, SUSTAINABLE, AND FUTURE-READY ROADS IN INDIA

In India’s dynamic infrastructure landscape, roads and highways are the arteries that fuel economic progress. Over the past decade, India has made tremendous strides in the development of its road network. According to the Ministry of Road Transport and Highways, India now boasts 1,46,126 km, (as of 25 July 2024) of national highways, a significant increase from approximately 91,000 km in 2014.

Challenges in Building Safe and Sustainable Roads

However, creating a road network that is growing and expansive but also safe, sustainable, financially sound and future-ready remains a goal for the Government and Industry alike. As India continues its journey towards becoming a USD 5 trillion economy, the CII National Committee on Roads and Highways has placed safety, environmental sustainability, financial efficiency and future readiness of roads at the core of its agenda. Achieving these goals requires a multifaceted approach – one that addresses key issues such as improving project planning, integrating sustainability into road construction, resolving disputes swiftly and ensuring smooth cash flow throughout projects.

Emphasizing Environmental Sustainability from the Ground Up

Sustainability is no longer a choice but a necessity in infrastructure development. Roads and highways are significant contributors to carbon emissions, making it imperative that we rethink how they are constructed, operated and maintained.

Innovative Sustainable Practices

The use of recycled materials like crumbed rubber bitumen can drastically reduce India’s reliance on imported bitumen while simultaneously promoting local industries. Similarly, adopting bamboo for crash barriers or integrating municipal waste in road construction represents an innovative approach to eco-friendly practices. Furthermore, promoting electric and sustainable fuel-backed vehicles on highways, alongside eco-friendly construction equipment, will further drive India’s push towards a greener future.

Framework for Eco-Friendly Projects

A critical addition to this sustainability effort would be a framework to rate road projects based on their eco-friendly initiatives. Such a system would incentivize compliance, ensuring that projects not only meet regulatory requirements but actively contribute to environmental preservation.

Solving Liquidity Challenges in Infrastructure Projects

Liquidity remains a critical bottleneck in India’s infrastructure sector. Delayed payments, inefficient financial management and unresolved disputes create a ripple effect, slowing project execution and increasing costs. For road infrastructure projects, where capital intensity is high, maintaining cash flow is crucial to ensuring timely completion.

Proposed Solutions

One key step toward addressing liquidity challenges is ensuring that projects are backed by sound financial planning and reliable funding mechanisms. Financial innovations such as project-specific credit lines and faster disbursement schedules can significantly ease liquidity issues. By adopting a forward-thinking approach incorporating digital tools for tracking and forecasting cash flows, stakeholders can ensure smoother project execution without financial disruptions.

Additionally, ensuring that contractors and vendors are paid on time will have a direct impact on liquidity and productivity. This not only reduces bottlenecks in project timelines but also improves the overall health of the sector, promoting a more efficient and investor-friendly ecosystem.

Improving the Quality of Detailed Project Reports (DPRs): Reducing Arbitration Risks

A recurring challenge in India’s road sector has been the disconnect between Detailed Project Reports (DPRs) and on-ground realities. Incomplete or rushed DPRs, which fall short of international standards, have frequently led to safety concerns, delays and ultimately, disputes. Arbitration cases often arise from such shortcomings, dragging project timelines into prolonged cycles of dispute resolution, increasing costs and stifling progress.

The Case for Better DPRs

If India is to maintain its upward trajectory in infrastructure development, a shift is necessary. Investment in more accurate and thorough DPR preparation can greatly mitigate these risks. By allocating more time and resources upfront, stakeholders will prevent costly delays and reduce the likelihood of arbitration altogether, ensuring smoother project execution. A DPR that accounts for safety, environmental and operational realities will lead to roads that are not only structurally sound but also safe and sustainable.

A Streamlined Dispute Resolution Mechanism: The Way Forward

Disputes are inevitable in large infrastructure projects, but what’s important is how they are managed. Prolonged disputes often result in severe liquidity issues, stalling projects and increasing the risk of failure.

Proposed Solutions

A solution lies in minimising personal biases and subjectivity in the dispute resolution process. One proposed approach is to adopt a nameless and faceless claims settlement process, ensuring fairer, quicker resolutions.

The launch of the National Highway Authority of India’s online dispute resolution module in July 2024 by the Ministry of Road Transport and Highways (MoRTH) is a step in the right direction. Yet, stakeholders have highlighted the need for further improvements in the module to make it more efficient and accessible. A continuous feedback loop involving Industry players and policymakers will help refine the system, ensuring that arbitration becomes a true last resort rather than a routine bottleneck that disrupts project cash flow and timelines.

Smart Roads for a Smarter Future

As India’s infrastructure expands, there is an opportunity to imagine the future of smart roads – those that leverage cutting-edge technologies such as Artificial Intelligence (AI) and Machine Learning (ML). From enhancing traffic management and reducing congestion to improving road safety and optimizing maintenance, these technologies can revolutionize the way we build and operate roads. Smart roads, integrated with advanced signalling systems and scientifically designed speed breakers, could significantly reduce emissions while enhancing safety standards.

Expanding Focus Beyond National Highways

Additionally, expanding the focus beyond national highways to city and state-level roads will help build a comprehensive strategy that balances sustainability with road safety. Such an approach will lead to a more robust and far-reaching road network that benefits every tier of India’s infrastructure system.

A Collective Commitment to a Sustainable, Safer Road Network

The path to a sustainable, safer and financially sound road network in India requires a multifaceted approach. From improving the quality of DPRs to integrating sustainability into every phase of road construction and operation and streamlining dispute resolution processes, stakeholders must come together with a shared commitment to progress. By embracing these principles, we will not only build infrastructure that drives economic growth but also create a resilient and environmentally conscious framework that benefits future generations.

As India embarks on its ambitious growth journey, the road ahead can be smoother, safer and smarter – provided we invest in the right solutions today. The private sector has a crucial role to play and it is time for all stakeholders to embrace innovation, sustainability and collaboration as guiding principles for the future of India’s roads and highways.

This article was written by Vinayak Pai , Chairman, CII National Committee on Roads & Highways and CEO & MD, Tata Projects and published in Policy Watch October 2024, Vol 11, Issue 5